CODI
IndustrialsCompass Diversified · Conglomerates · $860M
What is Compass Diversified?
Compass Diversified is a publicly traded holding company that acquires and manages a portfolio of niche industrial and branded consumer businesses across North America. It operates as a permanent capital vehicle, giving investors exposure to a diversified set of middle-market companies.
Compass Diversified acquires controlling stakes in middle-market companies operating in sectors such as manufacturing, distribution, consumer products, business services, safety and security, electronic components, and food and foodservice. The firm targets businesses with established cash flows and typically holds each investment for five to seven years. Revenue is generated through the operating performance of its portfolio companies, with the holding structure allowing capital to be recycled into new acquisitions over time.
Founded in 2005 and headquartered in Westport, Connecticut, Compass Diversified also maintains an office in Costa Mesa, California.
- Controlling acquisitions of niche industrial businesses
- Branded consumer product company ownership
- Middle-market buyouts and add-on acquisitions
- Long-term capital deployment across diversified sectors
- North America-focused portfolio management
Is CODI a Good Stock to Buy?
UQS Score rates CODI as Poor overall, reflecting broad weakness across its fundamental pillars.
Among the five pillars, Valuation is the lone area rated Neutral, suggesting the market may already be pricing in the company's challenges rather than applying a significant premium.
Quality, Moat, Growth, and Risk are all rated Weak — a combination that signals limited competitive durability, constrained earnings momentum, and meaningful balance-sheet or operational risk for investors to consider.
Pro members can view the complete pillar breakdown and underlying financial metrics to understand exactly where CODI stands relative to sector peers. Sign up free →
Past performance does not guarantee future results. UQS Score is based on fundamental data and is not a buy/sell recommendation.
Does CODI pay dividends?
Yes — Compass Diversified pays a dividend.
Compass Diversified pays a regular dividend, which is a notable feature for income-oriented investors. As a holding company, distributions are tied to the aggregate cash generation of its portfolio businesses. Investors should weigh the dividend against the Weak Risk pillar rating, since holding-company structures can face cash-flow variability when portfolio companies underperform.
When does CODI report earnings?
Compass Diversified reports earnings on a quarterly cadence, consistent with US-listed equities.
Given the Weak Growth and Weak Quality pillar ratings, recent operating results have not demonstrated the kind of consistent improvement that would signal a positive fundamental trend. Performance across the portfolio can vary meaningfully from quarter to quarter depending on conditions in each subsidiary's end market.
For the most recent quarter's results and management commentary, visit Compass Diversified's investor relations page directly.
CODI Price History
-43.3% over 5Y
Monthly close, adjusted for stock splits and dividend reinvestment.
What if I invested in Compass Diversified?
Based on Compass Diversified's historical closing prices, adjusted for stock splits and dividend reinvestment. Past performance does not guarantee future results. This is for informational purposes only and is not financial advice.
CODI Long-term Outlook
The combination of Weak Growth and Weak Risk pillars points to a challenging near-term fundamental outlook for CODI. Capital recycling through new acquisitions remains the primary lever for improving portfolio-level performance, but execution risk is elevated in the current middle-market environment. The Neutral Valuation rating suggests limited downside from multiple compression, though that alone does not offset the broader fundamental concerns reflected in the UQS profile.
Growth drivers
- Add-on acquisitions that expand existing portfolio company scale
- Recovery in niche industrial and consumer end markets
- Disciplined capital recycling into higher-quality platform businesses
Key risks
- Elevated financial leverage common to holding-company structures
- Portfolio company underperformance reducing distributable cash flow
- Acquisition pricing risk in competitive middle-market deal environment
CODI vs Peers
CODI operates in a niche space alongside other diversified holding and royalty structures, each with a distinct approach to capital deployment.
Cresud focuses on agricultural and real estate assets primarily in Latin America, offering a very different geographic and sector exposure compared to CODI's North American industrial and consumer portfolio.
Diversified Royalty generates income through royalty streams from franchise and service businesses, a lower-risk cash-flow model that contrasts with CODI's direct operating ownership approach.
Matthews International is an industrial and brand-solutions company with its own operating businesses, competing with CODI for investor attention in the diversified industrials space but with a single integrated corporate structure rather than a holding-company model.
Frequently Asked Questions
What does Compass Diversified do?
Compass Diversified acquires and manages controlling stakes in middle-market companies across niche industrial and branded consumer sectors in North America. It operates as a permanent capital vehicle, holding businesses for roughly five to seven years before recycling capital into new acquisitions.
Does CODI pay dividends?
Yes, Compass Diversified pays a regular dividend. The distribution is funded by the aggregate cash flows of its portfolio companies. Investors should review the sustainability of those cash flows in light of the Weak Risk pillar rating before relying on the dividend as a primary return driver.
When does CODI report earnings?
Compass Diversified follows a standard quarterly reporting cadence for US-listed companies. For exact release dates and management commentary, check the investor relations section of the company's official website.
Is CODI a good stock to buy?
UQS Score rates CODI as Poor, with Weak ratings across Quality, Moat, Growth, and Risk. The Neutral Valuation rating is the only relative positive. Whether that profile fits an investor's goals depends on individual risk tolerance and portfolio context — the full pillar breakdown is available to Pro members.
Is CODI overvalued?
The UQS Valuation pillar for CODI is rated Neutral, suggesting the current market price is neither significantly stretched nor deeply discounted relative to fundamentals. Given the weak underlying quality profile, a Neutral valuation does not necessarily represent a margin of safety.
How does CODI compare to its competitors?
Compared to peers like Diversified Royalty Corp. and Matthews International, CODI's holding-company model offers broad sector diversification but also introduces complexity and leverage risk. Each peer takes a meaningfully different approach to capital structure and income generation, making direct comparison nuanced.
What is CODI's market cap bracket?
Compass Diversified is classified as a small-cap company. This places it below large-cap industrials in terms of market size, which can mean lower liquidity and greater sensitivity to broader market volatility.
Who founded Compass Diversified?
Compass Diversified was founded in 2005 and is headquartered in Westport, Connecticut. For detailed founding history and leadership background, the company's investor relations and about pages are the most reliable sources.
Is CODI a long-term quality investment?
As a long-term quality indicator, the UQS Score rates CODI as Poor. Sustained long-term performance typically requires durable competitive advantages and consistent earnings quality — areas where CODI currently scores Weak. Investors focused on long-term compounding may want to weigh this profile carefully.
What is the main competitive advantage of Compass Diversified?
CODI's primary structural advantage is its permanent capital model, which allows it to hold businesses through cycles without forced-sale pressure. However, the Weak Moat rating suggests this structural feature has not yet translated into durable competitive advantages at the portfolio-company level.
What sector does CODI belong to?
Compass Diversified is classified in the Industrials sector. Its portfolio spans niche industrial businesses, branded consumer products, distribution, and business services — giving it exposure across multiple end markets within that broad classification.
Is CODI a growth stock or value stock?
Based on the UQS profile, CODI fits neither label cleanly. The Growth pillar is rated Weak, ruling out a growth classification, while the Neutral Valuation pillar does not signal the deep discount typically associated with a value opportunity. It occupies an in-between position that warrants careful analysis.
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Pro Analysis
CODI — Score History
| Date | UQS | Quality | Moat | Growth | Risk | Value | Change |
|---|---|---|---|---|---|---|---|
| May 23, 2026 | 21.8 | 17.3 | 8.0 | 29.8 | 20.4 | 43.1 | 0.0 |
| May 22, 2026 | 21.8 | 17.3 | 8.0 | 29.8 | 20.4 | 42.9 | 0.0 |
| May 21, 2026 | 21.8 | 17.3 | 8.0 | 29.8 | 20.4 | 42.8 | +1.2 |
| May 20, 2026 | 20.6 | 17.3 | 8.0 | 29.9 | 20.4 | 35.2 | 0.0 |
| May 17, 2026 | 20.6 | 17.3 | 8.0 | 29.9 | 20.4 | 35.1 | -0.1 |
| May 16, 2026 | 20.7 | 17.3 | 8.0 | 30.4 | 20.4 | 34.6 | 0.0 |
| May 15, 2026 | 20.7 | 17.3 | 8.0 | 30.4 | 20.4 | 34.5 | 0.0 |
| May 14, 2026 | 20.7 | 17.3 | 8.0 | 30.4 | 20.4 | 34.7 | 0.0 |
| May 13, 2026 | 20.7 | 17.3 | 8.0 | 30.4 | 20.4 | 34.6 | +0.1 |
| May 12, 2026 | 20.6 | 17.3 | 8.0 | 30.4 | 20.4 | 34.3 | 0.0 |
CODI — Pillar Breakdown
Quality
— 17.3/100 (25%)Compass Diversified currently shows below-average quality metrics, suggesting challenges with profitability.
How effectively capital is deployed to generate returns.
Profitability relative to shareholders' equity.
Ability to convert revenue into operating profit.
Bottom-line profit as a share of revenue.
Asset productivity — how much gross profit each dollar of assets generates.
Free cash flow relative to market value.
Growth
— 29.8/100 (20%)Compass Diversified faces growth headwinds with declining or stagnant revenue trends.
Revenue trajectory over the last twelve months.
Compound annual revenue growth rate over 3 years.
Year-over-year earnings per share growth.
Analyst consensus for future revenue growth.
Analyst consensus for future earnings growth.
Risk
— 20.4/100 (15%)Compass Diversified presents elevated risk with concerns around leverage or financial stability.
Debt levels relative to earnings capacity.
Total debt relative to shareholder equity.
Short-term liquidity — ability to pay near-term obligations.
Earnings capacity relative to interest payments.
Valuation
— 43.1/100 (15%)Compass Diversified has a mixed valuation — some metrics suggest fair value while others appear stretched.
Inverse of forward P/E — higher yield means cheaper stock.
P/E relative to earnings growth — lower is more attractive.
Enterprise value multiple relative to sector median.
Moat
— 8/100 (25%)Compass Diversified operates in a highly competitive environment with limited sustainable advantages. The Moat pillar evaluates competitive advantages across five dimensions: Switching Costs, Network Effects, Cost Advantage, Intangible Assets, and Scale & Ecosystem. Sign in to customize moat ratings for CODI.
Score Composition
Financial Data
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How is the CODI UQS Score Calculated?
The UQS (Unified Quality Score) for Compass Diversified is calculated using a proprietary 6-pillar framework with 29 financial metrics. Each pillar evaluates a different dimension on a 0–100 scale, then combines into a single weighted score. Scoring thresholds are calibrated per sector. Momentum is an optional Pro toggle — without it, you get the 5-pillar / 25-metric core shown below.
Quality (25%) measures profitability and capital efficiency — ROIC, ROE, margins, GP/Assets, and FCF Yield.
Moat (25%) assesses Compass Diversified's competitive advantages across switching costs, network effects, cost advantages, intangible assets, and ecosystem scale.
Growth (20%) tracks revenue trajectory and earnings momentum, combining historical results with analyst forward estimates.
Risk (15%) is inversely scored — lower leverage and strong balance sheet health result in higher scores.
Valuation (15%) measures whether Compass Diversified is fairly priced using earnings yield, price-to-FCF, PEG ratio, and EV/EBITDA relative to sector peers.
Six investor-inspired presets are available, each with different pillar weights: Balanced, Buffett, Munger, Lynch, Cathie Wood, and Graham. The public score shown here uses the Balanced preset. Learn more in our FAQ.